India’s trade deficit with China surges to $51.86 billion in 2015
India’s trade deficit with China swelled up to $51.86 billion in 2015, Commerce Minister Nirmala Sitharaman informed the Parliament on Monday. "Increasing trade deficit with China can primarily be attributed to the fact that Chinese exports to India rely strongly on manufactured items meeting the demand of fast-expanding sectors like telecom and power while India's exports to China are characterised by primary products, raw material and intermediate products," Sitharaman said in a written reply to the Lok Sabha. Sitharaman said India’s bilateral trade with China was $71.22 billion in 2015. Though India’s exports to China stood at a meagre $9.68 billion its imports surged to a huge $61.54 billion. In another reply, the Commerce Minister said Indian MSMEs have been facing stiff competition from the Chinese imports. "In respect of 12 major product groups largely manufactured by MSMEs, imports from China grew at a higher rate than respective imports from all other countries combined during 2011-12 to 2014-15," Sitharaman said. India has for long asked China to recognise the sectors where the two countries can find scope to reduce imbalance of trade. So far, India has raised a total of 322 anti-dumping cases, involving 177 cases of China. "In order to boost exports and maintain balance of trade with China, India has impressed upon China to recognise the need for reduction in trade imbalance for a long term, sustainable and harmonious development of economic cooperation between the two countries," Sitharaman added. In 2014, India’s trade deficit with China reached $38.5 billion, while the overall trade surged $70.59 billion, breaking the shackles of a two-year decline.
March 15, 2016 | 01:00pm IST
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